If something goes wrong in one of your cheaper properties, the 9 other ones will act as a cushion to weather the mishap.

I live in the mountains where it is spring like weather year round.

The weather has been brutal this year. in a perfect world i would like to invest all winter and play all summer.

If revenues are forecast to grow at 3.5% and expenses only grow at 2.5%, by year 10, the NOI will look great, and the sale price based on exiting on a 4% cap will look huge.  

But the median rent at that moment was about $1,550, so the investor following the 1 percent rule would have looked elsewhere.Similarly, smart real estate investors may now look at an area where rents are modest but where population and employment are forecast to grow, which will drive demand for housing, and see a promising investment.All the best!

A luxury 12 bedroom home might not rent well in an area that has an off-season because you can't get that many guests together when kids are in school or when the weather isn't optimal, whereas a 1 bedroom might still rent in that same area. 

Either a connection there, or maybe just the weather or pace of life.Second, what are you investing in?

But the freedom we gained by being able to afford to buy a house and have savings outweighed living in great weather year round and being close to our friends and family.

The weather is fantastic is you like a drier climate.

We can argue about what's going on to cause cycles (interest rates versus supply/demand), but ultimately, I prefer to look at history instead of theory to make my predictions/forecasts.